Terex forms Russian joint venture

Terex and Russian Machines have completed the formation of a joint venture to manufacture construction and road building equipment in Russia. The intention to form the joint venture was first announced last May by Terex and Gaz Group, which like Russian Machines, is part of the Basic Element group. Since the first announcement, Basic Elements has transferred its assets for the joint venture to Russian Machines, a new legal entity.

Under the agreement, the joint venture will manufacture and sell certain Terex models and all Russian Machines construction and road building equipment in Russia. It will also distribute certain Terex machines manufactured elsewhere and imported to Russia.

Terex chairman and CEO Ron DeFeo said, "Russia and the CIS remain long-term attractive markets and the demand for fundamental infrastructure upgrade across the region is clear. This Joint Venture allows us to be closer to the customer and provide localised products to an increasingly important customer base."

Steve Filipov, president of Terex Developing Markets, added, "This new venture will help Terex to solidify its goal in becoming the most customer responsive company to meet local infrastructure building needs. In addition, it will bring the distribution partners together from both companies to deliver improvements in product line, quality, support, and service available for our customers in the Russian market."